Tag Archives: investor

Save with Standard & Poor’s 500 Index

The equity performance in America is usually determined with the Standard & Poor’s 500 Index. Constituting of over 70% of the publicly traded companies in the U.S., the S&P Index is hugely popular given its close proximity with the some of the well-known mutual funds that are currently in operation. They are the Vanguard 500 Index Fund, and Spiders (AMEX: SPY), the first exchange traded fund (ETF). The investors can save effectively through it given the fact that the S&P comprises of 500 companies belonging to a diverse range of industries. It is often misapprehended that these 500 companies are rated due to their revenues or market capitalization. But it is basically, the best of the common stocks of the U.S. The factors the work in the selection are sector representation, liquidity and market size.

The investment of the investor stands secured when it is done following the notifications of the S&P 500 as he gets an opportunity to enjoy the benefits of earnings from diverse fund allocation. Nearly every relevant section of the American economy is covered and hence, all the market growth and movements that take place in these sectors earns you rich dividends. Savings is also substantial following the low expense ratios. But at times when the price movement of a limited number of stocks is taken into account, there can be an incomplete picture of the actual price movements.

George Sorros – An American currency speculator

Apart from being a currency speculator, Soros is a stock investor, a philanthropist, entrepreneur and a political activist. He was born on the 12th of August, 1930 in Budapest, Hungary. With a fortune of an estimated $11.0 billion, George Soros is listed as the 29th richest man in the world. He is well known for his penchant for donations and since 1979, he has donated $6 billion in various causes. In the presidential election of America in 2004, he is believed to have rolled in millions, simply to bar the re-election of George Bush.

He is one amongst the three founders of the Center for American Progress and is a representative at the board. He is the chairman of the Soros Fund Management and the Open Society Institute. He has also founded Georgia’s Rose Revolution and which had an indelible political impact.

His father was a Hungarian Jew and an Esperantist writer. In 1956, Soros immigrated to New York City and began to work as an arbitrage trader. Later, he joined the Wertheim and Company as an analyst. Soros was a believer in the theory of ‘Relexivity’. Through the course of his career, Soros realized that he would be a better investor than a philosopher or executive. The journey towards becoming a millionaire began with the setting up of the First Eagle, his first investment fund.

Save with Index Investing

Index investing can be an amazing savings option. As an investor, you first get to have a clear idea about what are Indexes. Well, The Dow, S&P 500, Nasdaq 100 or the Wilshire 5000, all of them are indexes. Indexes are basically groups of stocks that are carefully selected in order to effectively represent certain sections or portions of the stock market. Majority of the index investments are based on S&P 500 or the Wilshire 5000. As you invest in them, you become a part-owner of these companies

As you delve deep into this investment pool, you would notice that the broad market index does match very closely to the return of the overall stock market. Majority of the mutual funds do not really manage to achieve this. The statistical data of the last ten years would reveal that less than 20% of the large-cap mutual funds have managed to outperform the S&P 500. This makes index investing a great option.

Then, the cost-efficient factor makes it a great way to save your investment too. Investment through the index funds are carried out only in those companies that are enlisted in the index. You don’t require an analyst to get this data! So, this way, you are saved on the operating fees that are usually charged by the funds from the shareholders. This indeed offers you high savings option.

 

Retirement Savings or Student Loan – A long-standing Dilemma

An investor in his late twenties or thirties has long been troubled by the dilemma that whether he should opt for paying down his student loan debts or focus solely on retirement savings. This is undoubtedly not an easy decision and it is the ultimate objective of one’s life that should decide on what he/she should choose. The decision becomes easier when you take into account the following points:


The 401(k) employer-matching programs –Maximize the amount of your 401(k) in accordance to your employer’s willingness to match up. This contribution to your savings will offer you instant and complete return on your investment.

Check and compare the Interest Rates and ROI – As you swing between the payment of your student loan debt and investment, just compare the interest rate on your debt with your expected Return on Investment. If the interest rate on the loan is higher, there is no point in paying off your debt.

What are your emotions on ‘debt’ – There are people who cannot stand the thought of being in debt. If you are one of them, ease off your burden.

Consider paying yourself first – It’s obvious that whatever savings you make, belongs to you. You can pay the minimums of your student loan debt for a certain number of years and you will have your retirement savings intact; just because you’ve paid yourself first!

The self-directed IRAs can be an amazing savings option for the retirees

Since its creation in 1974, the IRAs have enabled the individuals to save their money in the retirement account or trusts, to attain benefits for themselves or their preferred beneficiaries. The IRA accounts should be strictly governed in adherence to the Sec. 408. With the self-directed IRAs, the investor is endowed with an enhanced control over the investment decisions. They are mostly referred to as the real estate IRAs, although, one can equally focus on the operating businesses, private placements, investment partnerships and notes.

IRAs are considered to be great investment opportunities in the investment finance sector, if the investor is well-acquainted with the volatility of the stock market movements. It is a profitable investment strategy if one follows the regulations mentioned in the Sec. 4975; he will then be able to effectively steer away from the tax penalties. The most appealing part of the self-directed IRA is that you can efficiently diversify your investment. Say, if you concentrate on the Roth IRA, the growth of your assets would be free from taxation and you would also stand to receive potentially higher returns. There is an important point to note in this regard. Since a custodian cannot offer any advice concerning investments, the investor needs to be careful about the transaction requirements. But the savings generated from it at the fair end of one’s life is surely satisfying as the energy and effort devoted to it is none-the-less huge.

Saving and investment is a long term goal

It is basically a life-time exercise to devise an effective savings plan through proper investment. A tax-saving investment strategy can aid you in building a lump sum provident fund account. Saving in a provident fund has enormous advantages. It is backed by the state and offers considerably high return. There are tax-exemptions on the interest earned and above all, its effective post-tax return is pretty handsome.

 

An individual who has just begun to build his career, this is an important prospective to start off with. A regular contribution can offer long-term dividends. During this time, person is likely to be burdened with lesser responsibilities. As such, he can indulge in a bit investment risk like the equity mutual fund. A lot of financial experts are also of the opinion that it works better if calculated investment is targeted at these equity linked savings schemes of the mutual funds.

 

A basic term-insurance life policy is perhaps the cheapest mechanism to earn the maximum profit from an insurance investment. Then, there are the Fixed Income Instruments. Although they are incomparable to the equity investment, they offer assured and safe returns for investments. As they are free from any market risks, the investor stands to receive a specified amount at a stipulated period. He gets to build a stable portfolio. These are particularly appropriate for investors who are who are nearing retirement.

Points to keep in mind in order to check your brokers and brokerage firms

The investor can refer to the Central Registration Depository or the CRD in order to access information and every possible detail regarding his broker. This is important for ensuring the safety of your investment. It is a computerized data-base that houses the entire information file about your brokers, along with their representatives and the firms where they are employed.

 

The manner in which the brokers work along with the credentials are important to ascertain that your money is in safe hands and all you savings are securely traded. Say, if you desire to acquire information whether your broker has a proper license for the state that they are operating in or, if they had any tiff with the regulators, or whether they happened to receive any serious complaints regarding their operation from other investors, one can readily resort to this information source.

 

The educational background of the broker can also be checked out along with their past employers’ details. The state securities regulator of the Financial Industry Regulatory Authority can also present you with the desired information that you are seeking from the CRD. The investor complaints, if there are any, are important with regard to your objective of ensuring the security of your investment. The North American Securities Administrators Association website can prove to be a great aid in this respect. The telephone number of the BrokerCheck hotline is (800) 289-999.

International Property Investment Network – A Hub For Mushrooming Wealth

Prudent investments are good options to take your existing financial strength to a higher realm. Successful people always make use of their vision by investing in staple investment hubs. Thus they reap the skyrocketing fruits of success. Responding to the recent trends of the era, investment in property would appear as something you would love to invest in.

If you have ventured a thought for investing in lucrative properties, then International Property Investment Network is going to make the job easier for you. IPIN is a revered name in the international scenario as the organization that extends help by showing you the correct options of property investment.

A property investor looking for the most lucrative hubs to invest in would have all the answers to their queries regarding investment opportunities across the world from IPIN. Here you can avail of the latest news of the existing as well as the emerging opportunities.

At IPIN, the best incentive is high – annualized income with a negligible exposure to risk. The benefits that you enjoy are -
• Residential investment opportunities
• Property related funds and syndicates
• Land investment opportunities.
• Rental investment opportunities.
• Experienced Consultations when you face a problem.
• The best market analysis.
• A pool of information tools catering to news and strategy information.
• Options of attending online IPIN seminars where you get to know the very recent changes in the market and the resulting outcomes.